Insights
UK Plastic Packaging Tax: what it is, who pays it, and how to stay compliant
Nov
Plastic Packaging Tax (often shortened to PPT) can feel like “one more thing” to keep track of, until it hits your costs, your paperwork, or the questions customers start asking about recycled content.
This guide explains what PPT actually is, how to work out if it applies to you, what evidence you need, and the practical steps that make compliance a lot less painful.
The two numbers that matter most
PPT is built around two simple thresholds:
| What to check | The rule |
|---|---|
| Recycled content threshold | You pay PPT on plastic packaging components that contain less than 30% recycled plastic. |
| Registration threshold | You must register if you manufacture or import 10+ tonnes of finished plastic packaging components in a rolling 12-month period, or expect to in the next 30 days |
Even if your packaging meets the 30% recycled content threshold (so no tax is due), it can still count towards the 10-tonne registration test.
What’s the current rate?
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£223.69 per tonne for plastic packaging manufactured/imported from 1 April 2025
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£228.82 per tonne from 1 April 2026
What counts as “plastic” for PPT?
For PPT purposes, “plastic” means a polymer material (including additives like dyes or calcium), and it includes polymers marketed as biodegradable, compostable, or oxo-degradable
If a packaging component is made from multiple materials, it’s classed as a plastic packaging component when plastic (including its additives) is the predominant material by weight.
That matters because it’s easy to assume “paper + a bit of film” is a paper pack — but PPT looks at the actual weight split.
Who is responsible for paying it?
PPT is charged when a plastic packaging component is finished in the UK, or when finished plastic packaging is imported.
A few practical implications:
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Packaging can be one component (like a bag), or several components (like a bottle, cap and label).
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If you import packaging that’s already filled with goods, you can still be liable for PPT on each packaging component that makes up that pack.
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For UK manufacturing, the business responsible is generally the one that carries out the last substantial modification before the pack is filled/used.
A simple way to estimate your exposure
PPT is weight-based. A quick estimate looks like this:
PPT due = (taxable plastic packaging weight in tonnes) × (PPT rate)
If you’re trying to sense-check a product line, the fastest route is:
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get the weight per packaging component,
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multiply by your unit volume,
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convert grams → kilograms → tonnes,
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apply the rate.
HMRC also expects you to know and record component weights (in metric values) and the percentage recycled content.
Plastic Packaging Tax quick estimator
Add your packaging components, enter your unit volume, and we’ll estimate taxable weight (components under 30% recycled content) and the PPT due.
| Component | Weight per unit (g) | Recycled content | Plastic predominant? | Remove |
|---|
Estimated results
“Recyclable” doesn’t automatically help (evidence does)
PPT doesn’t tax packaging because it’s hard to recycle, it taxes packaging because it contains under 30% recycled plastic.
And there’s a crucial compliance point: for PPT, plastic is treated as virgin by default unless you have evidence that recycled material has been used.
So if you’re relying on the 30% threshold, the real question becomes: can we prove it?
What records do you actually need to keep?
If you’re registered, HMRC requires you to keep accounts and records that support what you submit in your quarterly returns, and those records must be kept for at least 6 years.
In plain English, your records need to show:
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how you calculated the figures on your return, and
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the evidence behind them (weights, recycled content, exemptions/reliefs, exports/credits where relevant).
The practical “do this next” checklist
If you want Plastic Packaging Tax to feel manageable, the trick is to treat it like a tidy admin process, not a big compliance project.
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Create a product-line list of the packaging components you manufacture/import. (“Product line” is how HMRC expects you to organise records.)
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For each component, record weight and whether it is plastic “by weight”.
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Collect and store supplier evidence for recycled content (especially if you’re relying on 30%+).
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Decide whether you’re approaching (or already over) 10 tonnes in a rolling 12 months, including packaging that isn’t taxable.
One upcoming change to be aware of (from 2027)
The government has confirmed two changes from 1 April 2027:
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a mass balance approach for accounting for chemically recycled plastic for PPT purposes, and
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removal of pre-consumer waste as a source of recycled content for PPT purposes.
If your recycled content strategy leans heavily on these areas, it’s worth keeping on your radar.
Frequently Asked Questions
Possibly. If you manufacture or import 10+ tonnes of finished plastic packaging components in a 12-month period (or expect to in the next 30 days), you may need to register, even if your packaging contains 30%+ recycled content and no tax is due.
No. PPT is based on recycled content. If a plastic packaging component has less than 30% recycled plastic, it may be taxable.
It can. For PPT, plastic includes polymers that are described as biodegradable, compostable, or oxo-degradable.
It’s calculated by weight. You pay a set rate per tonne on the weight of taxable plastic packaging components.
You’ll need records that support your return calculations. HMRC expects you to keep accounts/records behind your returns for at least 6 years, including evidence that supports recycled content where relevant.
Yes, it can. Packaging may be made up of multiple components, and liability can apply to imported finished packaging too — including packaging imported already filled with goods.